This project will research the cost effectiveness of partial care/hospitalization programs for the chronically mentally ill throughout the state of New Jersey. In a collaborative project with the Wharton Center for Policy Modeling, University of Pennsylvania, Best Practice Frontier Analyses will be utilized to assess the efficiency (conversion of resources into service activities) and effectiveness (conversion of service activities into outcomes) of programs that are: (1) either hospital-based or free standing, (2) single or multiple program element(s), and (3) recipient of either most or little funds from the Division of Mental Health and Hospitals. The impacts of these auspice & organizational characteristics will be examined vis-a-vis provided services and a client typology. The identified determinants of efficiency and effectiveness should have implications for policy and fundings as well as the DRG and other rate setting in New Jersey and elsewhere.